What is an Electric Power Association?
What is an electric power association, who owns it, and how does it work?
Very simply, an electric power association or cooperative is a private, not-for-profit organization, locally owned and managed and incorporated under state law, providing electricity to its member/owners at the least possible cost. There are two important things to remember about an electric power association:
It is actually owned by the members it serves, and each member has one vote in the affairs of the association, regardless of the amount of electricity he or she uses.
This is the difference between an electric power association and an investor-owned utility, which is organized for profit, and owned and controlled by its stockholders.
